Exo raises $200 million to build ultrasound devices for the price of a laptop 

The news

Exo, a startup based in Redwood City, California, has raised $200 million in funding to work on its vision for the future of medical imaging. For Exo CEO Sandeep Akkaraju, it is clear that ultrasound is the future of medical imaging because it is nonradiating and has no harmful side effects. The company is working on a combination of workflow software and a portable ultrasound device. 

About Exo

The software, Exo Works, is already available, compatible with every ultrasound machine on the market, and promises a smooth process from scanning to billing in 60 seconds. The software meets the standards of modern software: It runs on any device from a smartphone to a browser, is cloud-based, and can be used by non-experts without a manual. 

Exo is also developing a portable ultrasonic device, which is not yet on the market. Through a combination of nanotechnology and a proprietary chip, the device is supposed to be particularly portable and cost-effective. Ultrasound machines can cost anywhere from $40,000 to $250,000 for low-end technology, and in the millions for high-end machines. Exo’s device will be around the cost of a laptop. 

In the future, Exo plans to scale down its ultrasonic technology even further so that it can be used not only in portable devices, but also in wearable devices or patches.

Akkaraju's vision fits perfectly with the decentralization of healthcare, which we at MedTech Pulse also keep writing about: “Our vision is a healthcare system unconstrained by the four walls of a hospital and engineered for a world where providers can see clearly into every patient immediately.”

The bigger picture

The global point-of-care ultrasound market is expected to reach $3.1 billion by 2025 and will grow 5% annually over that period. However, simpler, more portable, and less expensive devices can significantly increase this market because they massively expand the potential fields of application.

Established medical technology players should take new competitors like Exo very seriously. Initially, their technology may be inferior to established high-end devices, but their extreme ease of use and significantly lower costs are the exact ingredients that disruptive innovation is made of.